M/s. Taarak India Pvt. Ltd., Delhi V. DCIT, New Delhi

ITA 803/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4025 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 15-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Assessee Lawyers: NANCY GOPALIA
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBE R I.T.A. NO. 803/DEL/2016 ASSESSMENT YEAR: 2011-12 M/S TARAK INDIA PVT. LTD. VS. DCIT, CIRCLE 16(1 ) 23/23, EAST PATEL NAGAR, NEW DELHI NEW DELHI 110 008 (PAN: AABCT6501D) (ASSESSEE) (RESPONDENT) ASSESSEE BY : MS. NANCY GOPALIA, CA REVENUE BY : SH. S.S. RANA, CIT(DR) ORDER PER H.S. SIDHU, JM THIS APPEAL IS FILED BY ASSESSEE AGAINST THE ORDER DATED 21.12.2016 PASSED BY THE LD. CIT(A)-9, NEW DELHI RE LATING TO ASSESSMENT YEAR 2008-09 ON THE FOLLOWING GROUNDS:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND IN FACT AND CIRCUMSTANCES OF THE CASE BY PASSING THE ORDER DATED 21.12.2015 UNDER SECTION 250 OF THE I.T. ACT, 1961 IN GROSS VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE. 2 2. THE LD. CIT(A) HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW IN REGARD TO CONFIRMING THE PENALTY IMPOSED BY THE DCIT, NEW DELHI UNDER SECTION 271(1)(C) OF THE ACT AMOUNTING TO RS. 3,75,613/-. 3. THE LD. CIT(A) HAS ERRED ON FACTS OF THE CASE BY LEVYING A PENALTY FOR CONCEALMENT OF INCOME UNDER SECTION 271(1)(C) OF THE ACT. APPELLANT HAS DULY DISCLOSED THE AMOUNT IN ITS INCOME TAX RETURN AND FINANCIALS AND THE SAME ARE DULY VALIDATED BY AUDITORS REPORT. THEREFORE THE PENALTY LEVIED BY AO AND CONFIRMED BY LD. CIT(A) SHOULD BE ANNULLED. 4. APPELLANT PRAYS THAT PENALTY IMPOSED BY THE AO AND CONFIRMED BY CIT(A) SHOULD BE DELETED AS COMPLETE DISCLOSURE OF FACTS WAS MADE IN THE INCOME TAX RETURN AND THERE WAS NO INTENTION TO EVADE TAX. 5. THE APPELLANT PRAYS THAT HE MAY BE ALLOWED TO ADD, AMEND, ALTER OR FOREGO ANY OF 3 THE ABOVE GROUNDS OF APPEAL AS THE CIRCUMSTANCES MAY WARRANT. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEAT ED HERE FOR THE SAKE OF BREVITY. 3. AT THE TIME OF HEARING, LD. COUNSEL OF THE ASSES SEE HAS STATED THAT LD. CIT(A) HAS NOT PROVIDED SUFFICIEN T OPPORTUNITY OF HEARING TO THE ASSESSEE AND PASSED THE EXPARTE ORDE R, THEREFORE, HE REQUESTED THAT THE ISSUES INVOLVED IN THE APPEAL MAY BE SET ASIDE TO THE FILE OF THE LD. CIT(A) TO DECIDE THE S AME AFRESH, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE A SSESSEE. 4. ON THE CONTRARY, LD. DR RELIED UPON THE ORDER P ASSED BY THE LD. CIT(A) AND STATED THAT ASSESSEE WAS GIVEN SUFFICIENT OPPORTUNITY FOR SUBSTANTIATING HIS CLAIM, BUT HE COULD NOT AVAIL THE SAME. THEREFORE, THE ORDER OF THE AUTHORITIES B ELOW ESPECIALLY THE IMPUGNED ORDER MAY BE UPHELD AND APPEAL OF THE ASSESSEE MAY BE DISMISSED. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS, ESPECIALLY THE IMPUGNED ORDER PASSED BY THE LD. CI T(A). AFTER EXAMINING THE IMPUGNED ORDER, WE ARE OF THE CONSIDE RED VIEW THAT LD. CIT(A) HAS PASSED THE EXPARTE ORDER AND DID NOT PROVIDE 4 SUFFICIENT OPPORTUNITY, AS A RESULT THEREOF, THE AS SESSEE COULD NOT SUBSTANTIATE ITS CASE BEFORE THE LD. CIT(A). THEREF ORE, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ISSUES IN DIS PUTE TO THE FILE OF THE LD. CIT(A) WITH THE DIRECTIONS TO DECIDE THE SA ME AFRESH, UNDER THE LAW, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05/10/2017 . SD/- SD/- [PRASHANT MAHARISHI] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 05/10/2017 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES